Carnival Group International Holdings Limited (“Carnival Group International” or the “Group” ; stock code, 996), an operator of all-encompassing large-scale leisure and entertainment complex projects, and originator of new concepts in tourism and consumption, has signed a memorandum of understanding (the “MOU”) today for the acquisition of 70% equity interest in Berjaya (China) Great Mall Co., Ltd. (the “Proposed Acquisition”). The Proposed Acquisition will provide a platform for the Group to capture the enormous tourism and consumption opportunities on the outskirts of Beijing city.
The MOU has been signed by Carnival Group International and Berjaya Leisure (Cayman) Limited and Berjaya Times Square (Cayman) Limited. The Berjaya group of companies is one of Malaysia’s largest and most influential conglomerates with significant investments in resorts, gaming, F&B and property projects in both Malaysia and overseas. The Berjaya Great Mall of China, which encompasses hotels, restaurants, recreational centres and commercial shops, is a mega-size integrated commercial development project within Yanjiao National High-Tech Industrial Development Area, in Sanhe City, Hebei Province. Phase 1 of Berjaya Great Mall of China is scheduled to open in 2H 2016. Besides a commercial mall, Phase 1 comprises one of the largest indoor theme parks in China. Upon completion of the whole development, it will be one of the largest integrated commercial developments in the world.
Mr. King Pak Fu, Chairman of Carnival Group International, said, “We are excited to sign this MOU today. China’s continuous economic growth has produced a more affluent population looking for resort-style holiday destinations offering a wide range of leisure and entertainment. We believe this market segment is under-served in China, thus Carnival Group International has created a new concept of integrated tourism and shopping. Following our first project – Rio Carnival in Qingdao due to open by May 2015 – we are thrilled to partner with a leader in leisure and hospitality – the Malaysian Berjaya Corporation – to serve the vast population in northern China.”
Mr. Leung Wing Cheong, Eric, Chief Executive Officer of Carnival Group International, said, “The Great Mall of China is located near the Beijing International Airport which is only a 30-minute drive from Beijing city centre. When completed, it will be one of the largest integrated commercial developments in the world, spanning 1,730,000 sq. meters providing modern recreational, amusement and leisure facilities in one commercial land area. With its strategic location close to Beijing, Tianjin and the rest of key cities in Hebei, the Proposed Acquisition will offer the Group enormous business opportunities to tap the strong growth of domestic consumption power.”
The consideration for the Proposed Acquisition shall be subject to further negotiation following the completion of due diligence process and independent valuation.